Six in 10 U.S. consumers will not absorb a 10 percent or greater increase in pricing at checkout due to tariffs, according to new data from direct-to-consumer tech provider ESW. 

A recent survey conducted by ESW, compiled in “Impact of Tariffs on Purchasing Decisions,” reveals that, aside from discounts or promo codes, consumers want free shipping, loyalty rewards and transparent communication about price increases in exchange for higher tariff-induced costs.

“Market volatility and increased costs due to tariffs are causing U.S. shoppers to change their spending habits,” said Eric Eichmann, chief executive officer at ESW. “Our data finds that younger, Gen Z consumers are far more likely than older Boomers to feel unprepared for price hikes and have already curtailed their spending in anticipation.

“As global retailers and brands strategize to offset these new developments, they must prepare to offer more perceived value, price transparency, and flexibility to retain brand equity and loyalty,” continued Eichmann.

Other key findings in the report include:

  • Most consumers will reduce spending once tariffs take effect. Seventy percent of the surveyed respondents said they would reduce their overall spending once tariffs take effect. Millennials top the list of those planning spending cutbacks, with 78 percent indicating a reduction. At 54 percent, Boomers are the most likely generation to stop buying certain imported goods.
  • Gen Z is spending now to save later. Fifty-eight percent of Gen Z respondents have pulled forward their purchases of high-priced items in anticipation of potential tariff increases. Overall, 45 percent of respondents have pulled forward spending on electronics and 37 percent are stocking up on groceries.
  • Discretionary items will be hit hardest. Sixty-eight percent of surveyed respondents plan to cut back on electronics spending due to tariff increases, 61 percent are reducing their purchases of apparel and accessories and 51 percent will spend less on home goods.
  • Pet supplies remain a high priority. Thirty-three percent of consumers will continue to pay for pet supplies regardless of tariff increases, second only to groceries.
  • Millennials favor buy-now-pay-later (BNPL) options in exchange for surge pricing. Millennial consumers are 36 percent more likely than other generations to prefer that brands offer buy-now, pay-later options, even if it means paying higher prices.

ESW said that U.S. survey findings mirror global shifts shown in ESW’s broader Global Voices Survey, which included over 18,000 respondents across 18 countries. Those findings include:

  • Consumers perceive online shopping as less expensive than shopping in-store. Of those spending more online this year, nearly 40 percent of respondents said they feel shopping online is less expensive than shopping in-store. Almost 49 percent of respondents who plan to spend more intend to do so because there are more purchase options available online.
  • Luxury brands benefit from global shoppers. Brands and retailers that cater to international shoppers continue to reap rewards driven by a convergence of tech advancements, economic dynamics, broader product selections, and shifting consumer behaviors. Twenty-five percent of survey respondents who made luxury goods purchases did so from outside their home countries, with 21.2 percent of respondents stating that they purchased from brands such as Burberry, Bulgari and Dior, both domestically and internationally.
  • Consumers are finding the exact product at a lower price internationally. Nearly 46 percent of respondents who shop online outside their home country do so because the total cost, including taxes and shipping, is lower than prices for identical items domestically.
  • Shoppers are unlikely to spend more for sustainable products. Despite two-thirds of surveyed respondents admitting that they try to live more sustainably, nearly 53 percent (52.9 percent) are unwilling to spend more on eco-friendly products; however, half (51 percent) of all respondents did say they consider the environmental impact of items when shopping, including carbon emissions, dye water contamination and microplastics, with an additional 54 percent also considering ethical production.
  • Nearly one in three shoppers (32 percent) intend to spend less online in 2025. Of those respondents planning to cut back on shopping for goods, 58 percent cited saving money as the primary driver. Concern about the current economic climate was cited as the second highest reason for cutting back at 36 percent, with the high cost of essentials, such as food, ranking third (32 percent).

The U.S. study, “Impact of Tariffs on Purchasing Decisions,” includes data from a nationally representative sample of 1,008 adult consumers collected in April 2025. The Global Voices survey comprises 18,448 participants from 18 countries, conducted between October 20 and November 1, 2024.